The government watchdog overseeing the $700 billion bailout program says the government’s response to the financial meltdown has made it more likely the United States will face a deeper crisis in the future. Neil Barofsky, the special inspector general for the Trouble Asset Relief Program, said the problems that led to the last crisis have not yet been addressed, and in some cases have grown worse. In a new report, Barofsky writes, “Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car.” Barofsky also warned the government’s growing role in the housing market has increased the risk of another housing bubble.
